Pay mortgage early

Extra or supplementary payments on mortgage paying mortgage early. There are three ways to pay off mortgage early without paying a fine. The borrower can use bi-weekly mortgage payment, lump sum mortgage payment or extra mortgage payment.

The terms and conditions of your mortgage will tell you how much you can pay additional or supplementary without paying the fine. The mortgagor or borrower pays penalty where the additional or supplementary payment exceeds the limitations. Mortgage is an asset to mortgage lender. Since mortgage lender lose interest if you have extra or pay additional about the limitations, the mortgage lender brings penalty the mortgagor or borrower.

In bi-weekly mortgage payment the borrower pays the mortgage every two weeks. This option is the most affordable and convenient way to pay mortgage early from the three options to pay mortgage early. For the annual lump sum and extra mortgage payment should the borrower with larger projects. 12 The borrower makes payments on a regular monthly mortgage payment, while the borrower is twenty-six payments on bi-weekly mortgage payment. Because the borrower more payment, the borrower more money to the mortgage. To calculate the biweekly mortgage program, you just divide the monthly payment mortgage by two. For example, the borrower pays $ 1,000 monthly mortgage payment. The borrower pays $ 500 ($ 1,000 monthly mortgage payment/2) in bi-weekly mortgage payment. Another example, the borrower took $ 100,000 principal, 6.5% interest, and 30 year mortgage. The borrower pays $ 316 bi-weekly mortgage payment ($ 632 monthly mortgage payment/2) in order to pay off mortgage early. The borrower is 5 years and 11 months.

The annual lump sum mortgage payment is one big extra or additional mortgage payment each year. Mortgage lender can usually up to 15% of the principal that the outstanding balance of the mortgage. For example, took the borrower $ 100,000 principal, 6.5% interest, and 30 year mortgage. The borrower pays $ 632 monthly mortgage payment. At the date of the anniversary of the following year charged the borrower an additional payment of $ 15,000 ($ 100,000 x 15%) to pay off mortgage early. The borrower saves 5 years and 7 months.

The extra mortgage payments act as annual lump sum. The only difference is that the borrower pays extra amount of money on top of regular mortgage payment on a regular basis. For example, took the borrower $ 100,000 principal, 6.5% interest, and 30 year mortgage. The borrower pays $ 632 monthly mortgage payment. At the date of the anniversary of the following year charged the borrower an additional payment of $ 500 on top of $ 632 monthly mortgage payment for 12 months. So, the borrower pays $ 1155 per month. The borrower saves 10 years and 11 months.

Most borrower dreams to fully own the property by paying mortgage. Without mortgage Gets the borrower personal peace and financial freedom. And, it allows the borrower to save for their retirement. The money goes to savings and investment instead of mortgage rates.